Happy Veteran’s Day!! Thank you to all of our men and women who have served in the Military.

Mortgages rates ended the week sharply higher with the release of the October employment report on Friday. Non Farm job creation crushed expectations causing a sell-off in the Mortgage Backed Security market of over 100 bps.

Positive economic news from the employment report, US 3rd quarter GDP, and ISM manufacturing is causing more pricing pressure and thoughts that the FED could taper their stimulus package sooner.

Unfortunately, the employment report usually shapes the monthly trend of interest rates. I think rates will likely slowly rise during the month of November.

I would recommend locking pricing if you are in the market for a mortgage.

FMAE CHANGES COMING THIS WEEKEND

Fannie Mae is implementing a new underwriting system this weekend. The highlights of the guideline changes are:

-No more interest only loans. I have to lock any new interest only loans by Wednesday, so if you want one – please call me asap.

-Maximum LTV going from 95% to 97%

-FMAE HARP loans no longer will require the waiting period required for Forclosures, Bankruptcies and Short sales